Abstract

The garment manufacturing sector (and, implicitly, knitwear) was one of the most important areas of the Romanian economy during the communist era, satisfying a large part of the existing demand, both in the domestic market and at the external ones. By making a statistic untill the year of 1989, we note that this sector occupied about 10% of Romania's industrial output, 30% of the country's exports and 20% of the number of employees in industry. After 1989, this industry experienced several stages of development, but also stagnation due to the conjuncture that the Romanian economy crossed. Currently, the knitwear market in Romania is dominated by legal entities that carry out lohn production activities at the expense of own brand production, the factors favoring this reality being: relocation of lohn businesses from China to countries like: Romania, Morocco, Tunisia, Turkey, Hungary etc .; high attractiveness of the lohn production system for domestic legal entities, both from an economic perspective and from the perspective of constancy of orders; and so on. This article wishes to highlight the current situation in the knitwear sector in the Northeast Region of Romania, namely the trends from the perspective of the local legal entities working on the lohn production system.

Highlights

  • JEL ClassificationAccording to the latest statistical data available in the North-East Region in the year

  • The garment manufacturing sector was one of the most important areas of the Romanian economy during the communist era, satisfying a large part of the existing demand, both in the domestic market and at the external ones

  • As can be seen throughout this article, many organizations have focused on rendering lohn production services, mainly serving external markets, a context in which we consider appropriate to include in analysis the indicator Export of articles and accessories clothing from knitwear

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Summary

JEL Classification

According to the latest statistical data available in the North-East Region in the year. 2015, the specific market for NACE code 1439 The manufacture by knitting or crochet of other garments was represented by 52 units, representing 18.71% of the national active units. The territorial distribution of the active national units reveals the tendency of concentration of the legal entities in the North-West (30.22%), North-East (18.71%). 1. At the level of the North-East Region, most legal entities are located in Neamt County, with a considerable distance from it being Bacău and Iaşi counties - figure no. 2. The concentration trend of the legal entities in Neamt county - 63.46% of the local active units, originates in the sector tradition in this area, where some of the most famous and old knitwear brands was founded (eg SC EMA S.A.). MOSTLY UNKNOWN BUT STILL PROFITABLE: THE LOHN SYSTEM IN THE NORTH-EST REGION OF ROMANIA

Vaslui county
Neamt county
Botosani county Iasi county
Advantages and disadvantages of the lohn production system
Findings
Conclusions

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